06/08/2021 | Press release | Distributed by Public on 06/07/2021 18:03
The Morrison Government has released the report of the Council of Financial Regulators' (CFR) review into Financial Market Infrastructure (FMI) Regulatory Reforms.
The release of the CFR's report follows the announcement in the 2021-22 Budget that the Morrison Government will, in line with the report's recommendations, introduce an FMI regulatory reform package to ensure financial regulators have sufficient powers to intervene to manage a crisis and pre‑emptively identify and manage risks.
FMIs including financial markets, clearing and settlement facilities, benchmark administrators and derivative trade repositories play a critical role in the operation of financial markets and the financial system more broadly, supporting $18 trillion in securities transactions and $185 trillion in notional value of derivatives transactions every year. FMIs enable businesses, investors, and governments to raise capital, access liquidity, manage risk and invest funds.
Consistent with the CFR's recommendations, the Government's reform package will:
The CFR's report builds on extensive consultation by the Government and CFR. This reform initiative also delivers on the recommendations the Financial System Inquiry and the International Monetary Fund, and is consistent with existing crisis management arrangements applying to authorised deposit-taking institutions and general insurers.
The report and CFR's response to consultation can be found on the CFR website.